1992 Legislative Session: 1st Session, 35th Parliament
FIRST READING
The following electronic version is for informational purposes only.
The printed version remains the official version.
MINISTER OF FINANCE AND
CORPORATE RELATIONS
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:
1 The definition of "deposit business" in section 1 of the Credit Union Incorporation Act, S.B.C. 1989, c. 23, is amended by striking out "or" at the end of paragraph (b), by adding "or" at the end of paragraph (c) and by adding the following:
(d) at specified intervals for a specified term; .
2 Section 3 is amended by adding the following paragraph:
(b.1) Part 7, Proceedings, except sections 224 and 230 to 239; .
3 Section 5 is amended
(a) in subsection (3) by striking out "75 to",
(b) in subsection (4) by striking out "75, 75.1 and", and
(c) in subsection (4) by striking out "sections 75 and 95" and substituting "section 95".
4 Section 6 (1) (d) and (e) is repealed and the following substituted:
(d) subscribing to a constitution prepared in accordance with subsection (2),
(e) adopting a common bond of membership that meets the requirements of section 40 (1), and
(f) adopting rules prepared in accordance with section 7.
5 Section 8 is repealed and the following substituted:
8 On the registrar receiving
(a) the constitution,
(b) the common bond of membership,
(c) the rules, and
(d) a notice of the credit union's
(i) registered office,
(ii) records office, and
(iii) offices in which the credit union proposes to carry on business,
the registrar, subject to section 11, shall register the constitution, common bond of membership and rules and enter the name of the credit union in the register of financial institutions.
6 Section 11 (2) (a) (i) is repealed and the following substituted:
(i) submitted to the commission the proposed constitution, common bond of membership and rules of the proposed credit union, and .
7 The following section is added:
25.1 The superintendent is party to any proceedings in which an application is made to the Supreme Court under section 295 of the Company Act as it applies for the purposes of this Act.
8 Section 40 is amended by adding the following subsection:
(4) A credit union shall file with the registrar every special resolution amending its common bond of membership.
9 Sections 64 (8), 65 (4) and 69 (2) are amended by striking out "the commission" and substituting "the superintendent".
10 Section 78 is amended
(a) in subsection (1) (a) by striking out "21" and substituting "18", and
(b) by adding the following subsections:
(5) Where a notice of a general meeting or special resolution given under subsection (1) is sent by post, service or delivery, it shall be deemed to be effected by properly addressing, prepaying and mailing the notice, and, unless the rules of the credit union provide for a longer period of time, the service or delivery shall be deemed to have been effected 5 days, Saturdays and holidays excepted, following the date of mailing.
(6) Where no mail service is available, a notice required under subsection (1)
(a) may be given by advertising on 2 separate occasions not less than 5 days apart, inclusive of the day of publication, in a newspaper circulating in the area in which the credit union carries on its operations, and
(b) shall be deemed to have been received by the member on the day of the last publication.
11 Section 100 is repealed and the following substituted:
100 An individual or entity who, under this Act or the regulations, obtains
(a) information, or
(b) records
that are submitted in accordance with a request that is made or an obligation that is imposed under this Act or the regulations shall not disclose the information or records to any individual or entity, other than for the purposes of administering this Act and the regulations, for the purposes of a prosecution or where required by law.
12 Section 1 (1) of the Financial Institutions Act, S.B.C. 1989, c. 47, is amended
(a) in the definition of "deposit business" by striking out "or" at the end of paragraph (b), by adding "or" at the end of paragraph (c) and by adding the following:
(d) at specified intervals for a specified term; ,
(b) in the definition of "extraprovincial insurance corporation" by striking out "section 192 (3);" and substituting "section 192 (3), but does not include
(c) a corporation that
(i) is licensed under Division 2 of Part 6 as an insurance agent or insurance adjuster, and
(ii) carries on insurance business only in its capacity as an insurance agent or insurance adjuster;" ,
(c) in the definition of "extraprovincial trust corporation" by striking out "the laws of Canada or of another province" and substituting "the laws of a jurisdiction other than the Province", and
(d) in paragraph (a) of the definition of "senior officer" by striking out "chairman or a vice chairman" and substituting "chairperson or a vice chairperson".
13 Section 5 is amended
(a) in paragraph (b) by striking out "197 (1)," and substituting "197,", and
(b) by adding the following paragraph:
(c.1) Part 7, Proceedings, except sections 224 and 230 to 239; .
14 Section 6 is amended
(a) by adding the following paragraph:
(b.1) respecting the keeping of company registers, sections 69.1 and 70; , and
(b) in paragraph (g) by striking out "321 to 324 (1)," and substituting "321, 323, 324 (1),".
15 Section 10 is amended
(a) by adding the following subsections:
(4.1) The reference to "this Act and the regulations" in section 143 of the Company Act shall be read as a reference to "the Financial Institutions Act, the Company Act and the regulations under both of these Acts".
(5.1) The reference to "21 days' " in section 167 of the Company Act shall be read as a reference to "18 days' ". ,
(b) in subsection (6) by striking out ' "7th day" ' and substituting ' "5th day" ', and
(c) by adding the following subsections:
(7.1) The reference to "this Act" in section 194 (1), (2) and (3) of the Company Act shall be read as a reference to "the Financial Institutions Act and the Company Act".
(8.1) The reference to "member" in section 196 of the Company Act shall be read, in relation to a credit union, as a reference to "member and auxiliary member as defined in section 1 of the Credit Union Incorporation Act".
(10.1) The reference to "the minister" in section 295 (1) of the Company Act shall be read as a reference to "the minister, the superintendent or the commission".
16 Section 61 (1) (e) is amended by adding "or under the Credit Union Incorporation Act" after "under this Act".
17 Sections 62, 174 and 186 (9) are amended by striking out "before, on or after the coming into force of this section." and substituting "before or after the coming into force of the regulation prescribing the conditions."
18 Section 65 (1) is amended by striking out "and" at the end of paragraph (a), by adding "and" at the end of paragraph (b) and by adding the following:
(c) business of a prescribed type.
19 Section 68 (2) is amended
(a) in paragraph (d) by adding "or life insurance business together with accident and sickness insurance business" after "life insurance business", and
(b) in paragraph (e) by adding "except accident and sickness insurance business" after "general insurance business".
20 Section 72 is amended by striking out "may co-mingle assets held in trust in a common trust fund for the purposes of investment." and substituting ", for the purposes of investment, may co-mingle assets held in trust in a common trust fund that
(a) meets the prescribed criteria,
(b) has been established in accordance with the regulations, and
(c) is operated in accordance with the regulations."
21 Section 85 (2) is amended by striking out "subsection (4)," and substituting "subsection (6),".
22 Section 90 is amended
(a) in subsection (1) by striking out "subsection (3)," and substituting "subsections (3) and (4),", and
(b) by adding the following subsection:
(4) If a transaction described in subsection (1) is an oral contract arranged by a general insurance agent
(a) as a result of a customer's telephone request, and
(b) between the customer and an insurer that the agent has authority to bind under contracts of insurance,
then the agent may make the disclosure required under subsection (1) to the customer immediately after arranging the transaction.
23 Section 109 (2) (a) is amended by striking out "chairman" and substituting "chairperson".
24 Section 113 is amended
(a) in subsections (2) and (5) by striking out "chairman" and substituting "chairperson", and
(b) in subsection (3) (a) by striking out "section 125," and substituting "section 125 (1),".
25 Section 125 is amended
(a) by repealing subsection (1) (e), and
(b) in subsection (2) by striking out "or" at the end of paragraph (a), by adding "or" at the end of paragraph (b) and by repealing everything after paragraph (b) and substituting the following:
(c) makes an amendment to the financial institution's investment and lending policy established under section 134 (4),
the financial institution shall file a copy of the statement or the amendment with the superintendent.
26 Section 126 is amended by adding the following subsections:
(3) It is sufficient compliance with section 196 (1) of the Company Act as it applies for the purposes of this Act if a credit union that otherwise complies with the requirements of that section substitutes for the financial statement referred to in that section a condensed financial statement that conforms to the requirements of subsection (4) of this section.
(4) The condensed financial statement referred to in subsection
(3) must contain
(a) a condensed statement of profit and loss for the relevant financial year, and
(b) a condensed balance sheet made up to the end of that financial year.
(5) A credit union that sends a condensed financial statement to each member and auxiliary member as permitted by subsection (3) shall
(a) keep at each of its branches or offices a copy of the full financial statement, and
(b) provide a free copy of the full financial statement to any member or auxiliary member who requests one.
27 Section 134 is amended by adding the following subsection:
(6) A financial institution shall file with the superintendent a copy of the investment and lending policy established under subsection (4).
28 Section 139 is amended
(a) in subsection (1) in the definition of "financial leasing" by striking out "his" and substituting "the lessor's",
(b) in subsection (2) by striking out everything before subparagraph (i) of paragraph (a) and substituting the following:
(2) Section 136 (1) (d) does not apply if a financial institution directly or indirectly acquires, holds or controls
(a) more than 10% of the voting shares in a corporation that carries on, or more than a 10% interest in another type of entity that carries on, one or more of the following kinds of business: ,
(c) by repealing subsection (2) (b) and substituting the following:
(b) more than 10% of the voting shares in a venture capital corporation, or , and
(d) in subsection (2) (c) by adding "more than 10% of the voting shares" after "impose," .
29 Section 142 (1) is amended
(a) in paragraph (c) by adding "not counting any non-equity shares in the case of a credit union," after "institution,", and
(b) in paragraphs (l) and (m) by striking out ", (e)".
30 Section 156 (2) is amended by striking out "section 68 (4), sections 133 to 136," and substituting "sections 68 (4), 110, 133 to 136 (1),".
31 Section 167 is amended in the definition of "insurance agent" by striking out "other than an insurer," and substituting "other than an insurance company or an extraprovincial insurance corporation,".
32 Sections 172 (1) (c) (ix) and 173 (2) are amended by adding ", insurance company or extraprovincial insurance corporation" after "insurance agent".
33 Section 191 is amended by adding "110," after "Part 3, sections".
34 Section 217 is repealed and the following substituted:
217 An individual or entity who, under this Act or the regulations, obtains
(a) information, or
(b) records
that are submitted in accordance with a request that is made or an obligation that is imposed under this Act or the regulations shall not disclose the information or records to any individual or entity other than for the purposes of administering this Act and the regulations, for the purposes of a prosecution or where required by law.
35 Section 219 is amended
(a) in subsections (2) and (3) by striking out "9 voting members" and substituting "11 voting members",
(b) in subsection (3) by striking out "and" at the end of paragraph (d), by adding ", and" at the end of paragraph (e) and by adding the following:
(f) 2 shall be individuals who need not be licensed under this Act and who shall be members at large. , and
(c) in subsection (7) by striking out "chairman" and substituting "chairperson".
36 Sections 220 (1), 222 (3) and 224 (2) are amended by striking out "chairman" and substituting "chairperson".
37 Section 230 (1) is amended by striking out "or" at the end of paragraph (c), by adding ", or" at the end of paragraph (d) and by adding the following:
(d.1) has contravened section 176, .
38 Section 233 (4) is amended by striking out "the agent, salesperson or employed insurance adjuster, as the case may be," and substituting "the agent, the employer of the salesperson or the employer of the employed insurance adjuster, as the case may be".
39 Section 235 (3) is amended by adding "of the minister, commission, superintendent or council" after "a power".
40 Section 244 (1) is amended by striking out "or" at the end of paragraph (h), by adding ", or" at the end of paragraph (i) and by adding the following:
(j) a person named in the order to hold the assets affected by the order in that person's possession, safekeeping or control in trust for
(i) a receiver or receiver manager who has been appointed or whose appointment has been applied for under section 250, or
(ii) an interim receiver, custodian, trustee, receiver manager, receiver or liquidator who has been appointed or whose appointment has been applied for under the Company Act, the Law and Equity Act, the Personal Property Security Act, the Supreme Court Act, the Bankruptcy Act (Canada) or the Winding-up Act (Canada).
41 Section 250 is amended
(a) in subsections (1), (3) and (4) by striking out "receiver, receiver manager or trustee" wherever it appears and substituting "receiver or receiver manager", and
(b) in subsection (2) by striking out "receiver, receiver manager or trustee" and substituting "receiver or receiver manager" and by striking out "receiver, receiver manager or a trustee" and substituting "receiver or receiver manager".
42 Section 251 (2) is amended
(a) in paragraph (a) by striking out "90 (1) (a) or (b)," and substituting "90 (2),", and
(b) in paragraph (b) by adding "90 (1)," after "80 (1)," and by striking out "176,".
43 Section 259 is amended
(a) by renumbering the section as section 259 (1),
(b) by repealing paragraph (b) of the definition of "deposits",
(c) by adding the following definition:
"money on deposit" means the unpaid balance of the aggregate of money received by a credit union from or on behalf of a depositor in the course of carrying on deposit business for which the credit union
(a) has given or is obligated to give credit to the depositor's account or has issued or is obligated to issue a receipt, certificate or other instrument in respect of which the credit union is primarily liable, and
(b) is obligated to repay the money to the depositor on a fixed day, on demand by the depositor, within a specified period of time following demand by the depositor or at specified intervals for a specified period of time,
including any interest accrued or payable to the depositor. , and
(d) by adding the following subsection:
(2) For the purpose of the definition of "money on deposit", if a credit union has deposited money into its own deposits on behalf of itself as trustee, it shall be deemed to be obligated to repay the money to the same extent as it would have been obligated to repay the money had the money been deposited by a trustee other than itself.
44 Section 265 is amended
(a) in subsection (1) by repealing the definition of "amount in default",
(b) by repealing subsection (2) and substituting the following:
(2) In the event of a credit union failing, neglecting or refusing to pay to a depositor of the credit union all or a part of any of the depositor's deposits in the credit union, as and when payable, redeemable or withdrawable, then payment out of the fund of the deposit is guaranteed, subject to and in accordance with this section and the regulations, by the deposit insurance corporation in an amount that does not exceed $100 000 for each prescribed separate deposit of the depositor. , and
(c) in subsection (3) by striking out "amount in default" and substituting "deposit".
45 Section 288 (3) is amended by adding the following paragraph:
(g.1) for the purpose of section 72,
(i) prescribing criteria for common trust accounts of trust companies and credit unions, and
(ii) governing the establishment and operation of common trust accounts by trust companies and credit unions, .
46 Section 33 (1) of the Company Act, R.S.B.C. 1979, c. 59, is amended by adding "and" at the end of paragraph (b), by striking out "and" at the end of paragraph (c) and by repealing paragraph (d).
47 The following section is added:
69.1 (1) A company may keep its register of members at any office in British Columbia of
(a) a trust company, or
(b) an extraprovincial trust corporation
that is authorized to carry on trust business under the Financial Institutions Act.
(2) If a company, in accordance with subsection (1), keeps its register of members at an office of a trust company or extraprovincial trust corporation, it may also keep its register of allotments and its register of transfers at that office.
(3) If a company, in accordance with this section, keeps its register of members and either or both of its register of allotments and its register of transfers at an office of a trust company or extraprovincial trust corporation, then the trust company or extraprovincial trust corporation, as the case may be, shall promptly give the registrar notice
(i) of the address of its office in British Columbia at which those registers of that company are kept,
(ii) of any change of the address of its office at which those registers of that company are kept, and
(iii) on ceasing to keep them, of the date it ceases to keep those registers of that company.
48 Section 70 is amended
(a) in subsection (2) by striking out "a trust company," and substituting "a trust company that is authorized to carry on trust business under the Financial Institutions Act, or an extraprovincial trust corporation that is so authorized,", and
(b) in subsection (4) by adding "or an extraprovincial trust corporation" after "trust company".
49 Section 187 (1) (d), (e) and (j) is amended by striking out "section 69;" and substituting "section 69.1;".
50 Section 194 (1), (2) and (3) is amended by striking out "and, in the case of a financial institution, by the Financial Institutions Act,".
51 Section 322 (3) is repealed and the following substituted:
(3) This part does not apply to an extraprovincial company that
(a) is an extraprovincial society, as defined in section 1 of the Society Act, other than
(i) an extraprovincial society that under section 190 of the Financial Institutions Act is deemed to have a business authorization, or
(ii) an extraprovincial society that under section 192 (2) of the Financial Institutions Act is ordered by the Superintendent of Financial Institutions to apply for a business authorization, or
(b) is registered under section 62 of the Cooperative Association Act, except as provided by section 62 (6) of that Act.
52 The Insurance Act, R.S.B.C. 1979, c. 200, is amended
(a) by including sections 43 and 101 in Part 2,
(b) by repealing the heading "PART 2.1" that appears immediately after section 28 of the Act,
(c) by repealing the heading:
"PART 3
LICENSING AND REGULATION OF INSURERS" , and
(d) by repealing the heading to Part 8 and substituting the following:
"PART 8
MISCELLANEOUS CLASSES OF INSURANCE" .
53 Section 29 of the Interpretation Act, R.S.B.C. 1979, c. 206 is amended
(a) by striking out paragraphs (c) and (d) of the definition of "savings institution" and substituting the following:
(c) a trust company or extraprovincial trust corporation authorized to carry on deposit business under the Financial Institutions Act, or
(d) a corporation that is a subsidiary of a bank and is a loan company to which the Loan Companies Act (Canada) applies; , and
(b) by repealing the definition of "trust company".
54 Section 11 of the Mortgage Brokers Act, R.S.B.C. 1979, c. 283, is amended by repealing paragraphs (b), (c), and (d) and substituting the following:
(b) savings institutions; .
55 Section 75 (2) of the Society Act, R.S.B.C. 1979, c. 390, is amended by striking out "that constitute insurance business as defined in the Financial Institutions Act" and substituting "other than an extraprovincial society that is authorized to carry on insurance business under the Financial Institutions Act".
56 Section 35 comes into force by regulation of the Lieutenant Governor in Council.
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